storage

storage

Postby kpratt » Wed Dec 22, 1999 9:21 am

Does anyone have any really nifty ideas for
parts storage....I am using steel bins with
shelving and Vimar cabinets...Pipes from the ceiling for fenders and odd sheetmetal and large wooden shelving for larger bulk items.
Looking for new ideas...Space has become a real problem.
kpratt
 

storage

Postby Gary J. Naples » Wed Dec 22, 1999 11:00 am

Hi Kpratt,

Unfortunately, this is a problem many parts managers face. An over crowded storage condition contributes to: restricted sales growth, poor efficiency, misplaced goods, lost goods, damaged goods, cramming, etc.

Its difficult to comment on a solution to your problem without actually seeing your situation. However, from your comments, I do sense that you have tried what you can to maximize space usage. Here are a few suggestions that you may not have considered.

If actual expansion to the current facility is not an option, perhaps if there is sufficient land an inexpensive storage structure might work. It need not be anything complex, and would need only electricity and phone, but could provide a practicle solution.

Another suggestion is a mezzanine system. Such a system can almost double your storage capacity. But, to consider this as an alternative, the current facility must be able to support the additional load; there must be sufficient unobstructed ceiling height (at least 17 feet or more); it must be professionally designed and meet all OSHA requirements as well as local codes; additional lighting and sprinkler systems must be added.

Still another alternative would be some type of off-site storage for slow moving and certain bulk parts. One place that comes to mind is a secured self-storage facility, assuming one is conveniently located to the dealership. You can weigh the rental fee against the benefits for feasibility. Some of the drawbacks are double handling of stocked parts, time involved for travel to and from the facility, etc.

In order to estimate your spacial requirements, following is a formula that I developed. In addition to assessing present capacity it allows for a 20% to 25% growth. It will help you to approximate your needs so you can discuss them with the owner/owners.

average monthly inventory value + average monthly value of stored supplies + average monthly core return - average monthly obsolescence return = average stocking inventory

average stocking inventory $32.00 (approximate inventory volume per square foot) = required square feet

Keep in mind this is only a guide for determining storage requirements. Whatsmore, not all the calculated square feet will be devoted to storage. Approximately 20% will be devoted to aisles.

Good lock.

Gary J. Naples
Gary J. Naples
 


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